INDU Dow Industrials Daily Chart Tight Bands Resolve Downwards Fibonacci Retracements 100-Day MA

The Dow has led the other major indexes lower in recent days. The Dow was first to be squeezed to the downside by the tight bands and the SPX followed. Dow was also the first to break its H&S pattern pointing to the downside. Today the Dow lost its 50-day MA at 15281 and now tests the 100-day MA at 15098.  This hints that the SPX needs to test its 50-day MA and perhaps move lower. The blue lines show the Fibonacci retracements for the move up from the June low to the July top. Price is between the 50% and 62% Fib's so a drop to test the 15030 level would be anticipated.

The indicators (red lines) remain weak and bleak wanting to see lower numbers for the Dow even if a bounce occurs. The weak RSI over the last two months is very bearish. Note how price remains well elevated compared to the June lows but the RSI is printing lower numbers. This behavior acts like a weight hanging on price dragging it down. The black circles show the critical test of the 100-day MA. In June, this identified the low. Will that happen tomorrow? The June low was mainly due to all the Fed members pumping markets as well as the BOJ, and do not forget the July 4th central banker holiday orgy courtesy of the BOE and ECB. A house of cards built on central banker easy money crack cocaine.   The selling volume was healthy today. Projection is lower prices moving forward. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here.  Consult your financial advisor before making any investment decision.